President Obama Lays Out Deficit Reduction Plans

In a rather somber (read: boring), yet important speech on Wednesday, President Obama laid out his plan to tackle the nation’s deficit over the next 10 years.

The speech was given partly in response to Rep. Paul Ryan (R-Wisc.) who put a forth a plan from the GOP to do the same thing last week. The president wanted to highlight some of the major differences between his plan and theirs. He also is gearing up for tough battles about the FY 2012 budget and plans to raise the nation’s debt ceiling later this year.

In his speech at The George Washington University in Washington, D.C., POTUS hit a few of the following goals between 24:15 -34:00 in his 43-minute speech:

Spending will stay low thanks to this year’s FY11 budget fight. But, America will still invest in the future, though (clean energy, education, infrastructure, etc.).

Defense spending has to tighten up. Even defense officials say America’s greatest safety threat is its debt. I CAN BELIEVE THAT!!

Reduce the government’s healthcare spending. This means target wasteful spending, leverage Medicare to get lower prices on drugs/services, and reward providers for preventative care and preventing injuries. Medicare, however, will stay in place and not become the sad voucher program that conservatives want.

Reduce spending in the tax code. This means no more tax cuts for millionaires and billionaires. They aren’t working and we’re bleeding money. They have to cough up their fair share of this equation too. Shit already rolls down hill, but in this case, they need to quit kicking it to us.

Results: Reduce the deficit by $4 trillion over the next 12 years, provide $2 trillion in spending cuts across the budget, and lower our interest payments on our debt by $1 trillion.

Let me know what YOU think of President Obama’s deficit reduction plan. Is it a good first step or more of the same?

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Sidenote: Be sure to make a pot of coffee or some strong tea before you watch this. If you listen hard enough, you can probably hear the audience’s eyes blinking as he is talking. This video can cure insomnia! There is no cute way to dress up deficit-speak.